If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that
A) the consumer's income is 250.
B) the price of shelter is 5.
C) the price of shelter is 5 times the price of food.
D) All of the above.
C
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How is money market equilibrium determined in the short run?
What will be an ideal response?
Conventional budget accounting practices tend to overstate deficits in inflationary periods because they
a. ignore the inflation tax. b. confuse repayment of principal with real interest expenditures. c. double count some expenditures. d. understate real interest rates.
Producer surplus is the
A. area under the supply curve to the left of the amount sold B. area under the supply curve to the right of the amount sold C. amount the seller is paid plus the cost of production D. amount the seller is paid less the cost of production E. cost to sellers of participating in a market
The price of gold is often volatile because:
A. supply is relatively inelastic so changes in demand have a large effect on price. B. supply is relatively elastic so changes in demand have a large effect on price. C. demand is relatively elastic so changes in supply have a large effect on price. D. demand is relatively inelastic so changes in supply have a large effect on price.